NewRiver REIT has completed the acquisition of pub landlord Hawthorn Leisure for a final value of £106.8m and posted strong annual results including a 26% rise in IFRS profit after tax.

The post-year end acquisition from an affiliate of Avenue Capital Group represented a net initial yield of 13.6% and will be paid out from existing resources. It further increases NewRiver’s proforma portfolio value from £1.24bn in annual results at 31 March to £1.35bn and ups the pub weighting within the REIT’s portfolio from 12% to 19%.

Alongside the new acquisition, NewRiver posted a steady EPRA NAV per share of 292p, equal to the NAV at 31 March 2017, as it increased IFRS net assets from £684.5m to £892.4m in what chief executive Allan Lockhart described as a “year of growth despite a challenging environment for UK real estate”.

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